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Bridging Finance and the impact of Coronavirus

We provide services to businesses who need assistance with
all types of finance, including Bridging Finance.

Hi, my name is Graeme Shevas.

I help businesses who need assistance with Bridging Finance and I
wanted to give an update on the Bridging Finance Market as a result
of Coronavirus and any impacts that it may have had. The first
thing to note, really, is that there are still plenty of bridging
lenders out there willing to lend, but there have been a couple of
impacts.

The main impact really is that some lenders have been withdrawing
from the market, and other lenders are actually finding that the
funds that they have available to lend are reduced. This is as a
result of people who are coming to the end of a bridge and not
being able to refinance, due to the current situation. They are
finding that the bridges are lasting a little bit longer, so the
funds aren’t coming back into the coffers in order to be able to
loan them back out again. There are some lenders who have not
completed on deals, or who have had deals that were not completed
and have now withdrawn the offer of finance. So, it’s a bit of a
mixed bag.

The main thing to note, really, is that the amount of money that is
loaned out on a bridge has actually reduced as a result of the value
decreasing. So, if you’re looking at a property transaction for the
bridge and the loan-to-value against which it will be secured is
probably, on average, about 10 percent down, largely to do with the
valuations, in terms of getting a desktop valuation done and reducing
the amount of risk involved in that.

So, the bottom line is that they are still available, there are lots
of lenders, and if you have a funding gap and it wasn’t necessarily
property related, maybe it was to do with business, as long as you
can prove an exit, (i.e. a way of actually repaying it in a period of
time, so maybe you’ve got other funds coming in our you’re waiting for
some finance against a commercial property or you’re trying to sell
something and the money has not come in yet but you desperately need
it now) it’s still available.

Bridging Finance is a flexible bit of finance which will suit many needs.
If this is something that is of interest to you or you want to discuss
it further, you can reach me on 07776 257 342,
email graeme@playfairfinance.co.uk or fill out the
‘Contact Us’ section on this website.

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